Costa Rican arrested in Spain for alleged financial crimes

May 10, 2016

Arthur Budovsky Belanchuk, 39, on Friday was arrested in Spain as part of a money laundering investigation performed jointly by police agencies in the United States and Costa Rica.

Costa Rican prosecutor José Pablo González said Budovsky, a Costa Rican citizen of Ukrainian origin, has been under investigation since 2011 for money laundering using a company he created in the country called Liberty Reserve.

Local investigations began after a request from a prosecutor’s office in New York. On Friday, San José prosecutors conducted raids in Budovsky’s house and offices in Escazú, Santa Ana, southwest of San José, and in the province of Heredia, north of the capital.

Budovsky’s businesses in Costa Rica apparently were financed by using money from child pornography websites and drug trafficking.

New York conviction

According to records from the U.S. Department of Justice, on July 27, 2006, Budovsky and a partner identified as Vladimir Kats were indicted by the state of New York on charges of operating an illegal financial business, GoldAge Inc., from their Brooklyn apartments.

They had transmitted at least $30 million to digital currency accounts worldwide since beginning operations in 2002.

The digital currency exchange, GoldAge, received and transmitted $4 million between Jan. 1, 2006, and June 30, 2006, as part of the money laundering scheme.

Customers opened online GoldAge accounts with limited documentation of identity, then GoldAge purchased digital gold currency through those accounts; the defendants’ fees sometimes exceeded $100,000.

Customers could choose their method of payment to GoldAge: wire remittances, cash deposits, postal money orders or checks.

Finally, the customers could withdraw the money by requesting wire transfers to accounts anywhere in the world or by having checks sent to any identified individual.

Budovsky and Kats were sentenced to five years in prison for engaging in the business of transmitting money without a license, a felony violation of state banking law, but got probation.

You may be interested

Costa Rican Friday Happy Hour #3: ‘El Otro Gol’
It's the weekend!
3899 views
It's the weekend!
3899 views

Costa Rican Friday Happy Hour #3: ‘El Otro Gol’

Katherine Stanley - November 17, 2017

Maybe it was this morning's story on what to expect at the World Cup 2018, now that the field of…

World Cup 2018: Who’s lurking behind the usual suspects?
Soccer
844 views
Soccer
844 views

World Cup 2018: Who’s lurking behind the usual suspects?

Peter Berlin / AFP - November 17, 2017

Lionel Messi knows the teams he fears most at the 2018 World Cup: champions Germany, Brazil, France and Spain. "I…

The blue skies (and waves) of summer
Photos & Video
19243 views
Photos & Video
19243 views

The blue skies (and waves) of summer

The Tico Times - November 15, 2017

With December just two weeks out, we're dreaming of summer days like this one at Playa Conchal. To celebrate Costa…